SEC’s Fast-Track Approval Hits a Wall—Unexpected Roadblocks Emerge
The Securities and Exchange Commission’s (SEC) much-hyped fast-track approval process just slammed into reality. What was pitched as a streamlined path for crypto innovators has devolved into bureaucratic quicksand—and nobody’s surprised.
Behind the Scenes: Paperwork Purgatory
Insiders whisper of applications piling up like unopened stablecoin whitepapers. The ‘efficiency-first’ system now resembles a proof-of-work blockchain—slow, expensive, and burning through goodwill.
Market Fallout: Trust Tanks
Traders are voting with their wallets—altcoin volumes dipped 18% since the delays began. ‘Regulatory clarity’ now sounds like a punchline at crypto conferences.
Finance Jab: Nothing moves faster than a regulator chasing headlines… until actual work is required.
$118,680, Ethereum
$3,713, XRP, Solana
$201, and Polkadot. Following these developments, neither Bitwise nor the SEC provided specific comments.
ContentsFast-Track Approval Hits a RoadblockExpert Opinions on the Situation
Fast-Track Approval Hits a Roadblock
In her letter, Haywood mentioned that the SEC intends to review the delegated authority action under Rule 431, keeping the July 22 order suspended until further notice. Consequently, the accelerated approval is practically ineffective. This decision coincides with ongoing discussions about the SEC’s preparation of a standard listing framework for cryptocurrency ETFs.
The SEC’s decision to suspend the approval process is reminiscent of the Grayscale Digital Large Cap Fund’s similar ETF conversion journey. Initially, that fund also received accelerated approval, only to have it suspended shortly thereafter. Grayscale maintained its determination to persevere through the process. Crypto Traders Are Rushing to This App – Here’s Why You Should Too
Expert Opinions on the Situation
Scott Johnsson of Van Buren Capital speculated that the approval might have been granted with knowledge of Democratic Commissioner Caroline Crenshaw’s likely objections or as part of a scheduled plan. In his view, both scenarios present investors with an undesirable situation. Bloomberg Intelligence’s James Seyffart agreed with Johnsson’s analysis, suggesting that the SEC is employing delay tactics until a comprehensive framework is established.
The new listing standard reportedly being developed by the SEC is expected to shorten the current process facilitated through the 19b-4 form, which can extend up to 240 days. The U.S. regulator is currently reviewing ETF applications for a broad range of cryptocurrencies, from solana to Dogecoin
$0.264174. Decisions regarding these ETF applications are anticipated by September-October.
